Singapore stocks end Friday lower amid inflation data jitters, STI down 1%

SINGAPORE – Stronger-than-expected inflation figures in the United States reignited fears of more interest rate hikes and sparked a global share rout on Friday that did not spare the local market.

The jolt sent the Straits Times Index (STI) sliding 1 per cent or 32.9 points to 3,185.79, but still 0.4 per cent ahead for the week.

Losers far outnumbered gainers 339 to 234 across the broader market on trade of 848.5 million shares worth $777.95 million.

It was much the same elsewhere, including on Wall Street overnight, where a four-day winning stretch

came to an abrupt halt.

The S&P 500 fell 0.6 per cent, while the Dow Jones Industrial Average slid 0.5 per cent and the tech-heavy Nasdaq dipped 0.6 per cent.

That set the stage for regional declines: The Kospi in Seoul fell 1 per cent; Hong Kong’s Hang Seng lost 2.3 per cent; and the Nikkei 225 in Tokyo closed 0.6 per cent lower.

Australian shares also fell 0.6 per cent, ending their six-day stretch in positive territory. Malaysian stocks closed flat.

UOB senior economist Alvin Liew noted that the bank expects headline US inflation to head lower towards the year end, but higher energy prices and persistently elevated accommodation costs could pose roadblocks.

He added that UOB expects the US Federal Reserve to hike interest rates for one final time this year when it meets in November.

Yangzijiang Shipbuilding was one of the STI’s top advancers for the day. The counter gained 2.5 per cent to close at $1.63, and also emerged among the most heavily traded stocks for the day, with 40 million shares done.

Nio was the top decliner, shedding 5.4 per cent to US$8.50.

The trio of local lenders was among the day’s biggest decliners. UOB fared the worst, falling 1.2 per cent to $28.34, while DBS Bank lost 0.7 per cent to $33.77 and OCBC Bank retreated 0.8 per cent to $12.98.

THE BUSINESS TIMES